Net-Short Exposure Expanded 57% Since Last Week

Spot Gold: Retail trader data shows 81.2% of traders are net-long with the ratio of traders long to short at 4.31 to 1. The number of traders net-long is 1.6% lower than yesterday and 8.0% lower from last week, while the number of traders net-short is 3.1% higher than yesterday and 57.5% higher from last week.

Sentiment Suggests Gold Prices May Reverse

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Spot Gold price trend may soon reverse higher despite the fact traders remain net-long.